Checking accounts are very useful. You can pay your bills, write a check, or use a debit card with your checking account. When you have an online checking account, you can enjoy all these services with a few more benefits. However, just like any form of technology-based service, there may be a downside to some of these checking account options. Here are the ins and outs of online checking accounts.
First, online checking accounts save you time and money. With traditional paper checks, you will have to go through counting bills, writing on a checkbook, purchasing stamps and envelopes, and sending them to the post office. Aside from this tedious routine, you run the risk of losing it in the mail. With online checking accounts, you simply have to go online, enter your payment amount and click the submit button.
Online checking account options even include a feature that allows you to pay automatically based on a payment schedule you set. â€¨â€¨Online checking accounts are very convenient. Instead of having to carry around a checkbook, you will simply need a debit card to make purchases. Its cost will be immediately deducted from your account so you will never have to worry about any outstanding payments that must be cleared.
Aside from convenience, online checking accounts are immediate. When paying bills online, your online account will reflect your balance, up to the minute or in real time. You will never have to wonder about whether you will be receiving a random check in the next few months.
Moreover, since almost all banks are going online for that paperless route, many of them are offering benefits and incentives for those who are opting for an online checking account. It could be in the form of higher interest or cash incentives.
A downside to online checking accounts is that it relies solely on technology. Most of the time it is convenient, but can also be frustrating as well. If you are in a location with no internet connections, you will find it very difficult to maintain your online account. In addition, if you prefer face-to-face contact with employees, an online checking account will not be ideal for you.
With the traditional paper check, you can comfortably rely on a 2-3 day float from the time you mailed your payments and the time they are cleared. This is very convenient if you are on a very tight budget. This feature is nonexistent in online checking accounts. With online checking accounts, once you make a payment, it is automatically debited from your account. Going for a traditional, offline checking account therefore may be ideal if money is tight and if you could benefit from a float.